Application Modernization Services Market Size, Share, Growth Analysis, By Service Type(Application Portfolio Assessment, Cloud Application Migration, Application Re-Platforming, Application Integration), By Deployment Mode(Public Cloud, Private Cloud), By Organization Size(Small and Medium-Sized Enterprises, Large Enterprises), By Vertical(BFSI, Healthcare and Life Sciences, Telecommunications, IT and ITEs), By Region - Industry Forecast 2025-2032

Global Application Modernization Services Market size was valued at USD 15.3 billion in 2022 and is poised to grow from USD 17.87 billion in 2023 to USD 61.9 billion by 2031, growing at a CAGR of 16.80% during the forecast period (2024-2031).

The application modernization services industry is highly competitive, with major players like IBM Corporation, Accenture, Cognizant. IBM leveraging its hybrid cloud and AI capabilities, and cloud providers like AWS, Microsoft Azure and Accenture AI, machine learning, DevOps to enhance its modernization services. It focuses on integrating these two solutions, providing industry-specific offerings that consumers will address areas such as healthcare, BFSI and others. Cognizant emphasizes cloud migration and application transformation, strengthening its market presence by targeting different industries.  'IBM (US) ', 'Accenture (Ireland) ', 'HCL Technologies (India) ', 'Atos (France) ', 'Capgemini (France) ', 'Cognizant (US) ', 'TCS (India) ', 'Bell Integrator (US) ', 'Oracle (US) ', 'Microsoft (US) ', 'Innova Solutions (US) ', 'Epam Systems (US) ', 'Aspire Systems (India) ', 'NTT Data (Japan) ', 'Dell Technologies (US) ', 'DXC Technology (US) ', 'Infosys (India) ', 'Wipro (India) ', 'Fujitsu (Japan) ', 'Softura (US) ', 'Hexaware Technologies (India) ', 'Mongodb (US) ', 'CloudHedge (India) ', 'D3V Technology Solutions (US) ', 'Bayshore Intelligence Solutions (US) ', 'Opinov8 (UK) ', 'One Six Solutions (US) ', 'Cleveroad (Ukraine) ', 'Techahead (India) ', 'Geomotiv (Belarus) ', 'Soft Suave (India)'

The business agility and innovation requirement drive enterprises to engage in the application modernization services. Legacy systems frequently need more agility for rapid change and innovation, driving firms to upgrade their applications. Companies must be adaptable in a continuously changing business world, responding to market movements, client preferences, and emerging technologies.  

Government Initiatives and Compliance Requirement: Governments worldwide understand the need for technology to improve public services, increase efficiency, and maintain regulatory compliance. Government initiatives to promote digital transformation and compliance requirements in many industries drive demand for application modernization services. The European Commission has approved an adjustment to the Digital Europe Programmed Work 2023-2024, which comprises an investment of more than €760 million. 

As per the application modernization services market analysis, North America is the most significant global application modernization services market shareholder and is estimated to grow at a CAGR of 14.6% over the forecast period. Rapidly changing IT infrastructure, expanding small and medium-sized organizations (SMEs), and rising cybersecurity solutions drive the North American application modernization services market. Growing IT supply manufacturers and distributors in the United States are replacing physical servers with virtualized environments to cut costs. Canada is experiencing strong demand in a multi-cloud scenario and more significant automation usage. Such approaches benefit the regional application modernization services industry.